148Termination on expiry of leases

148 Termination on expiry of leases

148 Termination on expiry of leases

(1) When all leases of the lots and common property in a leasehold strata scheme expire or are otherwise determined without being wholly or partly replaced by further leases of the lots or common property registered under the Real Property Act 1900—

(a) the scheme is terminated, and

(b) the owners corporation is dissolved, and

(c) if the leases or another agreement provide for the payment of compensation for the value of improvements comprised in the parcel—the former lessor of the scheme is liable to pay compensation to each former owner for the value of the improvements that is attributable to the former owner’s lot, and

(d) all rights vested in the owners corporation immediately before its dissolution that, but for the dissolution, would have survived the expiry of the leases are vested in the former owners, and

(e) the former owners become jointly and severally liable for all of the liabilities of the owners corporation subsisting immediately before its dissolution, and

(f) legal proceedings begun by or against the owners corporation may be completed by or against the former owners.

(2) Compensation payable under subsection (1) (c) is to be determined in accordance with the formula set out in Schedule 6 or as otherwise agreed by the former lessor and former owner.

(3) As soon as practicable after the termination of a leasehold strata scheme, the Registrar-General must, on application of the former lessor—

(a) cancel the folios for the leases of the lots and common property in the scheme, and

(b) cancel the strata plan for the scheme, and

(c) record on the folio for the parcel that was the subject of the scheme the fact that the scheme is terminated.

(4) Subsection (1) is subject to section 150.